Nippon Steel&Sumitomo Metal Corporation and PT Krakatau Steel have agreed to conduct a detailed study to jointly launch a business for the manufacture and sales of automotive flat steel products in Indonesia.
This will be done with a view toward capturing demand for high-grade automotive flat steel products,the market for which is expected to grow on a medium-to long-term basis following the development of the automotive market in Indonesia.
The two companies have also agreed to establish a joint venture company to acquire the right to use a piece of land in the Krakatau Industrial Estate Cilegon,which is located adjacent to the manufacturing base of PTKS.
NSSMC and PTKS will discuss the detailed terms and conditions of the Joint Venture with the aim of entering into a definitive agreement in the first half of 2013.
Through the Joint Venture,NSSMC and PTKS intend to meet the demand for high grade automotive flat steel products mainly from Japanese automakers that have developed their business in Indonesia,as well as to contribute to the further development of the Indonesian automotive industry.
Outline of the JVC
Company name:PT Krakatau Nippon Steel Sumikin
Location:Cilegon,Banten Province,Republic of Indonesia
Main business:Manufacture and sales of automotive flat steel products
Ratio of investment:NSSMC:51%,PTKS:49%
Outline of PT Krakatau Steel(Formal name:PT KRAKATAU STEEL
Foundation:1970
President director:Irvan Kamal Hakim
Location:(head office)Cilegon(approximately 100 kilometers from Jakarta to the west)
Capital:7.9 trillion rupiahs(approximately 79 billion yen)
*80%invested in by the Indonesian government
Main business:Flat steel products,bars&wire rods,steel pipes,and shaped steel
Steel product sales:Approximately 2 million tons per year
